Asylum seekers protest at the Icelandic Immigration Service’s reception center at Bæjarhraun in Hafnarfjörður.
mbl.is/Eggert Jóhannesson
In 2025, a total of 1,724 individuals with foreign citizenship who are resident in Iceland will receive old-age pensions, 1,075 will receive disability pensions, 1,464 will receive rehabilitation pensions, 30 will receive disability grants, and 794 will receive child support payments
— amounting to more than 5,000 individuals in total.
It can be confidently assumed that this number will increase significantly in the coming years.
These figures are among the points discussed by Arnar Arinbjarnarson and R
óbert Bragason, board members of the Taxpayers’ Association of Iceland, in an opinion piece published in
Morgunblaðið
today, written together with Kristinn Sveinn Helgason, an academic holding master’s and doctoral degrees in both public administration and business economics.
Sharp increase in pension recipients with foreign citizenship
In their article, the authors address a response from the Minister of Social Affairs and Housing to a parliamentary question from Rósa Guðbjartsdóttir, a member of parliament for the Independence Party, concerning trends in pension and child support payments to foreign nationals.
They note that the number of residents with foreign citizenship receiving old-age pensions in Iceland increased from 506 individuals in 2012 to 1,724 this year. Among men, the number increased more than fivefold, from 176 individuals to 994 over the same period.
The number of foreign nationals receiving disability or rehabilitation pensions also rose from 455 individuals in 2012 to 2,539 this year
— an almost sixfold increase. In particular, the number receiving rehabilitation pensions has grown rapidly, from 98 individuals to 1,464 over this period, corresponding to an average annual growth rate of around 23 percent.
Urgent need to review current rules
“The information presented in the minister’s response shows beyond doubt that there is an urgent need for the authorities to review the current rules governing the payment of disability or rehabilitation pensions to foreign nationals.
It is difficult to understand that foreign citizens can qualify for disability or rehabilitation pensions after only three years or one year of legal residence in Iceland, respectively, and it seems unlikely that such terms are available in other European countries.”
The authors further argue that the time has come for authorities in the welfare sector to place greater demands on the Social Insurance Administration for increased transparency and better analysis of the extensive public funds allocated each year to old-age, disability, and rehabilitation pensions. For example, they say it would be reasonable for the institution to regularly publish detailed information on its website regarding the origin and gender of those who receive its services, in line with international standards.
“In particular, the institution’s obligation to conduct analysis of existing data — such as that presented in the response to the aforementioned member of parliament — must be strengthened, so that authorities can take the necessary measures to improve the implementation of public policy and the use of funds in the areas of old-age, disability, and rehabilitation pensions.”